PUTRAJAYA: The federal government failed in its last attempt to stop the legal bid by Sabah Law Society (SLS) to challenge the 40 per cent special revenue grant to which the state is entitled under the Federal Constitution.
This is after a three-bench member of the Federal Court led by Datuk Nallini Pathmanathan affirmed the leave (permission) granted to the SLS to initiate the legal challenge today.
The court dismissed four questions of law highlighted by the A-GC and ruled that SLS has locus standi to bring the present case.
"We are dealing with the threshold for locus standi in judicial review.
"This issue could be reconsidered, if necessary, when the judicial review application is heard on its merits," said Nallini.
Other members of the bench were Datuk Zabariah Mohd Yusof and Datuk Rhodzariah Bujang.
On Nov 11, 2022, the Kota Kinabalu High Court granted SLS leave for its judicial review on the state's entitlement to 40 per cent of federal revenue earned from the state.
The government via the Attorney-General's Chambers (A-GC) appealed the decision and obtained a stay on proceedings in the High Court.
On June 18, the Court of Appeal upheld the lower court's decision on the grounds that SLS had established the threshold for locus standi in the case.
The three-member panel of the appellate court led by Datuk P. Ravinthran, when reading out the decision, said SLS had locus standi to commence the judicial review as it is a public interest litigation taken for the benefit of the public and not to seek redress for a personal wrong or grievance.
SLS filed the judicial review application in 2022, seeking to quash the federal government's gazette of an RM125.6 million annual grant for Sabah, claiming that it violated the state's revenue rights under the Malaysia Agreement 1963 (MA63).